Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help solve these accounting problems. Some are multiple steps and others are straight forward. 1. The Palmer Acres Inn is trying to determine its

image text in transcribed

Please help solve these accounting problems. Some are multiple steps and others are straight forward.

image text in transcribed 1. The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $145 a night. Operating costs are as follows. Salaries $5,400 per month Utilities $1,000 per month Depreciation $1,100 per month Maintenance $4,506 per month Maid service $39 per room Other costs $77 per room IE Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms IE Determine the inn's break-even point in dollars. Break-even point 2. Presto Corp. had total variable costs of $188,370, total fixed costs of $166,000, and total revenues of $299,000. Compute the required sales in dollars to break even. (Round answer to 0 decimal places, e.g. 1,225.) 3. Naylor Company had $152,000 of net income in 2016 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,700. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $62,300 in 2017. Compute the number of units sold in 2016. Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level. Assume that Naylor Company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reach the stockholders' desired profit level? 4. Glacial Company estimates that variable costs will be 55.2% of sales, and fixed costs will total $678,000. The selling price of the product is $5.00. Compute the break-even point in (1) units and (2) dollars. (Round intermediate calculation to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275.) Break-even sales............ Units Break-even sale IE Assuming actual sales are $2,246,000, compute the margin of safety in (1) dollars and (2) as a ratio. (Round ratio to 0 decimal places, e.g. 20.) Margin of safety..........$ Margin of safety ratio............ % IE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

=+What is Pats minimin choice?

Answered: 1 week ago

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago